Venus Chocolate Company processes chocolate into candy bars. The process begins
ID: 2418146 • Letter: V
Question
Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2014:
Cost of Production Report Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2014: ACCOUNT Work in Process-Blending Department ACCOUNT NO Date Item Debit Credit Balance Debit Credit 1 Bal., 4,400 units, 1/5 completed 31 Direct materials, 176,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 177,000 units 31 Bal, 2 units, 3/5 completed Mar. 457,600 99,800 24,912 11,792 469,392 569,192 594,104 Required:Explanation / Answer
Units information:
Inventory in process March 1
4400
Add; Received from materials store room
176000
Total Units Accounted for by the blending department
180400
Units to be assigned cost:
Equivalent Units
Whole units
Direct Material
Conversion
Inventory in process March 1
4400
0
3520
4400*4/5
Add: Started and completed in March
172600
172600
172600
(177000-4400)
Transferred to Molding deptt. In March
177000
172600
176120
Less: Inventory in process March 31
3400
3400
2040
(180400-177000)
(3400*1/1)
(3400*3/5)
Total units to be assigned cost
180400
176000
178160
Cost Information
Cost Per Equivalent unit:
Direct Material
Conversion
Total Cost for March in blending Deptt. (A)
$ 457,600.00
$ 124,712.00
(Conversion = Labor + Overhead )
(99800+24912)
Total Equivalent Units (B)
176000
178160
Cost per Equivalent Unit (A/B)
$ 2.60
$ 0.70
Costs Charged to Production:
Direct Material
Conversion
Total
Inventory in process March 1
$ 11,792.00
Cost incurred in March (457600+124712)
$ 582,312.00
Total cost accounted for by blending Deptt.
$ 594,104.00
Cost allocated to competed and partially completed units:
Inventory in process March 1 balance
$ 11,792.00
To complete Inventory in process March 1
$ -
$ 2,464.00
$ 2,464.00
(3520*0.70)
Cost of completed March 1 work in process
$ 14,256.00
Started and completed in March
$ 448,760.00
$ 120,820.00
$ 569,580.00
(172600*2.60)
(172600*0.70)
Transferred to Molding deptt. In March
$ 583,836.00
Inventory in process March 31
$ 8,840.00
$ 1,428.00
$ 10,268.00
(3400*2.60)
(2040*0.70)
Total cost assigned by blending Deptt.
$ 594,104.00
Units information:
Inventory in process March 1
4400
Add; Received from materials store room
176000
Total Units Accounted for by the blending department
180400
Units to be assigned cost:
Equivalent Units
Whole units
Direct Material
Conversion
Inventory in process March 1
4400
0
3520
4400*4/5
Add: Started and completed in March
172600
172600
172600
(177000-4400)
Transferred to Molding deptt. In March
177000
172600
176120
Less: Inventory in process March 31
3400
3400
2040
(180400-177000)
(3400*1/1)
(3400*3/5)
Total units to be assigned cost
180400
176000
178160
Cost Information
Cost Per Equivalent unit:
Direct Material
Conversion
Total Cost for March in blending Deptt. (A)
$ 457,600.00
$ 124,712.00
(Conversion = Labor + Overhead )
(99800+24912)
Total Equivalent Units (B)
176000
178160
Cost per Equivalent Unit (A/B)
$ 2.60
$ 0.70
Costs Charged to Production:
Direct Material
Conversion
Total
Inventory in process March 1
$ 11,792.00
Cost incurred in March (457600+124712)
$ 582,312.00
Total cost accounted for by blending Deptt.
$ 594,104.00
Cost allocated to competed and partially completed units:
Inventory in process March 1 balance
$ 11,792.00
To complete Inventory in process March 1
$ -
$ 2,464.00
$ 2,464.00
(3520*0.70)
Cost of completed March 1 work in process
$ 14,256.00
Started and completed in March
$ 448,760.00
$ 120,820.00
$ 569,580.00
(172600*2.60)
(172600*0.70)
Transferred to Molding deptt. In March
$ 583,836.00
Inventory in process March 31
$ 8,840.00
$ 1,428.00
$ 10,268.00
(3400*2.60)
(2040*0.70)
Total cost assigned by blending Deptt.
$ 594,104.00
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